Risk Management Includes Export Compliance

Risk management is a major concern of C-level executives for obvious reasons. While it is easy to overlook export compliance, managers should consider the financial risks of doing so. The Bureau of Industry and Security (BIS), which is part of the U.S. Department of Commerce, is charged with enforcement of export regulations. Penalties for non-compliance are steep. An export compliance program is sound business practice as well as good risk management. Here is some info from the BIS website.

  • Violations of the Export Administration Act and the Export Administration Regulations, 15 C.F.R. Parts 730-774 (2007) (EAR) may be subject to both criminal and administrative penalties.
  •  Criminal penalties can reach $1,000,000 and 20 years imprisonment per violation and the administrative penalties can reach the greater of $250,000 per violation or twice the amount of the transaction that is the basis of the violation.
  • Violators may also be subject to denial of their export privileges. A denial of export privileges prohibits a person from participating in any way in any transaction subject to the EAR. Furthermore, it is unlawful for other businesses and individuals to participate in any way in an export transaction subject to the EAR with a denied person.

Contact mitch@ for help with export compliance.